Ripple's XRP cryptocurrency experienced a significant surge in value on Thursday following a ruling by a judge in the Southern District of New York stating that it may not be classified as a security by default.
According to Coin Metrics, the price of XRP increased by 71% to around 80 cents per coin. This news brought optimism to cryptocurrency investors, as it suggested that other alternative coins (altcoins) may also not be considered securities. As a result, Polygon's Matic token saw a gain of 17.82%, while Litecoin and Solana experienced a jump of 18.35% and Cardano's token advanced by 20.31%. Bitcoin and Ether also received a boost, with their values rising by over 4% and 6% respectively.
Chris Martin, Head of Research at Amberdata, expressed his enthusiasm for the industry, stating, "The judgments today are a huge step forward for the industry. By ruling that XRP is not a security, we are gaining clarity on the distinction between securities and commodities. This will require the SEC to reconsider their approach in several ongoing cases, and I anticipate that this ruling will also impact the classification of other tokens as non-securities."
Coinbase, which had previously delisted XRP from its trading platform, announced on Twitter that it would once again allow trading of the asset. Gemini also stated that it is exploring the possibility of listing XRP for both spot and derivatives trading.
Martin further emphasized the implications of the judgment on institutional sales of XRP by Ripple, stating, "This ruling also has significant implications for the industry, potentially putting several initial coin offerings (ICOs) in the spotlight. As for exchanges involved in ongoing SEC cases, it remains unclear how this ruling will affect them, as they have mostly been engaged in secondary sales. Nevertheless, as we can see from today's market prices, there is a strong bullish sentiment following these judgments."
